Forget SpaceX: Investors Say This Is The Next Breakout AI Stock in 2026

We just covered The Next SanDisk: 9 Potential Breakout AI Stocks You Shouldn’t Miss. Digi Power X Inc (NASDAQ:DGXX) ranks #7 (see The Next SanDisk: 5 Potential Breakout AI Stocks You Shouldn’t Miss).

Number of Hedge Fund Investors: 11

Digi Power X Inc (NASDAQ:DGXX) is an energy infrastructure and AI data center company. It makes modular Tier III data centers through its ARMS platform and provides enterprise-grade GPU compute services through its NeoCloudz portal. Its customers are AI infrastructure companies like SubQ AI and Cerebras Systems.

A Tier III data center is enterprise-grade infrastructure with redundant power systems, cooling, and multiple independent distribution paths. It supports 99.99% uptime, which is what AI companies need for continuous computing operations.

Digi Power X Inc’s (NASDAQ:DGXX) strategy centers on pairing secured, grid-connected power capacity with modular, AI-optimized data center infrastructure. In April 2026, DGXX announced its first AI revenue contract with SubQ AI worth approximately $19.6 million. In May, the company signed a 40 megawatt AI colocation agreement with Cerebras Systems valued at $1.1 billion for the initial 10-year term, with potential to reach $2.5 billion total.

However, Q1 2026 revenue showed declines to $6.8 million from $9.3 million a year prior amid the planned wind-down of legacy cryptocurrency mining operations. The positive side is that adjusted EBITDA turned positive at $1.1 million versus negative $1.3 million in Q1 2025.

Management outlined aggressive revenue run-rate targets: $300 million annually for 2027, $450-500 million for 2028, and $800 million to $1 billion for 2029. These targets depend on executing debt-financing plans.

While we acknowledge the risk and potential of DGXX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DGXX and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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